A house in South Dunedin. Photo: RNZ / Nathan Mckinnon
New Zealanders expect more severe and more frequent climate hazards which are set to drive their impact their insurance premiums, according to a new report.
The IAG commissioned report showed 71 percent agreed they should pay higher premiums to live in a high-risk area, but only 17 percent were willing to subsidise the insurance premiums of those that chose to do so.
IAG NZ climate spokesperson Bryce Davies said consumers were conscious of the choices facing them.
"I think there's a recognition of growing risks and there's an expectation that people are rewarded for their own actions and managing the risk that they face."
He said people want to be rewarded with lower premiums for the good decisions they made for living in lower risk areas.
The survey indicated widespread support for avoiding and reducing development in high-risk areas, making buildings and infrastructure more resilient and better protected, including by using natural solutions.
But at the same time, only 25 percent could be marked as doing a good job at reducing the impacts of climate change.
Australian owned IAG's local brands include AMI, State, NZI, Lumley and Lantern.
At the climate cross roads
IAG NZ chief executive Amanda Whiting said the country was approaching a crossroads and faced having to make key decisions.
"We can commit to reducing risk and investing in resilience and adaptation to help keep insurance available and affordable for as many people as possible.
"Or we can keep doing what we are doing and risk rising costs, reduced coverage, and the possibility that some homes may become too risky or expensive to insure."
Seventy-five percent of respondents said it was the government's responsibility to act on climate change, but Bryce Davies said that while government does have a responsibility around infrastructure, it was not a simple of question of money.
He said the survey highlighted that people believe central and local government, business and individuals all have a role to in climate action. But what is needed from central government is good leadership, ensuring that good decisions are made around areas such as urban planning.
